What role did trust play in allowing this fraudulent scheme to transpire? What elements contributed to this trust?
Coincidence one: You stopped by the accounts payable department and retrieved a series of recently submitted invoices for various trade expenses related to the auditorium construction project. “One of the things you wanted to accomplish was to understand how the accounting codes worked—what was capitalized; what was expensed; how it was recorded, etc.” So, you grabbed a stack of processed invoices with accounting codes and went up to the construction site to meet with the vice president for an hour-long interview.
Coincidence two: the secretary for the audit department, Joyce Williams, was not only on Small’s bowling team, but she was also his neighbour. They saw each other regularly at the local bowling alley. She took notice when Small’s behaviour became somewhat extravagant. At first, he took to buying the team drinks, a habit most appreciated by his teammates. However, the secretary began wondering where all the money was coming from when he showed up in his new Mercedes (one of five cars he bought) and talked about a new $18,000 boat. He also invested in real estate and purchased a second home costing $416,000.
Coincidence three: After four years without a vacation, Small took what he considered a welldeserved trip to Las Vegas. But he wasn’t there long before he was called back to Oakville Ontario. One can imagine his chagrin at having to leave the casinos and boardwalks and head back to the office. Little did he know that things were about to get a lot worse. Upon his return, Small found himself confronted by the auditor, the vice president, and two attorneys from the district attorney’s office. He readily admitted guilt. “He said he had expected to get caught,”. Small claimed there was no one else involved, and the sum total of his fraud was about $400,000.” But based on your review you found that Small had forged endorsements on more than fifty checks in those four years, totalling $1,057,000.
c) What role did trust play in allowing this fraudulent scheme to transpire? What elements contributed to this trust?
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